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The following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50 cities in the
The following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50 cities in the United States:
Current Year Prior Year Interest expense $62,000 $67,000 Income before income tax expense 514,600 455,600
a. Determine the times interest earned ratio for the current and preceding years. Round to one decimal place.
Current year fill in the blank 1 Prior year fill in the blank 2
b. Although Caliber Company had enough earnings to pay interest in the prior year, the
improvementreduction in this ratio will be unwelcomedwelcomed by the debtholders.
The following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50 cities in the United States:
Current Year | Prior Year | |||
---|---|---|---|---|
Interest expense | $62,000 | $67,000 | ||
Income before income tax expense | 514,600 | 455,600 |
a. Determine the times interest earned ratio for the current and preceding years. Round to one decimal place.
Current year | fill in the blank 1 |
Prior year | fill in the blank 2 |
b. Although Caliber Company had enough earnings to pay interest in the prior year, the
improvementreduction
in this ratio will be unwelcomedwelcomed
by the debtholders. Step by Step Solution
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